RING FOR 2015 015-16 16 F UND NDING ING R OUND NDS E D L ACHANCE , - - PowerPoint PPT Presentation

PREPARING

RING FOR 2015

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ED LACHANCE, CT DEPARTMENT OF HOUSING MARCUS SMITH, CT HOUSING FINANCE AUTHORITY PETER HANCE, THE AFFORDABLE HOUSING COLLABORATIVE LLC CONN-NAHRO ANNUAL CONVENTION SEPTEMBER 1, 2015

• The Department of Housing (DOH) is the State's

lead agency for all matters relating to housing.

• Provides leadership for all aspects of policy and

planning relating to the development, redevelopment, preservation, maintenance and improvement of housing serving very low, low, and moderate income individuals and families.

• Promote affordable housing opportunities, seeks

to eliminate homelessness and catalyzes the creation and preservation of quality, affordable housing.

|Wh Who We Are

• The Connecticut Housing Finance Authority

(CHFA) is a self-supporting quasi-public housing agency formed in 1969.

• Statutorily charged with expanding affordable

housing opportunities for Connecticut’s low- and moderate-income families and individuals.

• To date, CHFA’s combined single- and multifamily

housing finance programs exceed $11 billion.

|Wh Who We Are

CHFA/D /DOH OH LEAN Event nts

Accomp mpli lishme hment nts

DOH and CHFA oversee 6 – 8 funding rounds annually

• 60+ projects per year totaling $1 billion in construction

costs

• Leveraging millions of dollars in debt, subsidy and equity

SSHP Special Round HTCC CHAMP/4% TEB 9% LIHTC CHAMP/4%- TEB

DOH / C / CHFA Fin inancin ing Schedule le

• Yearly Schedule based on State Budget
• Listing of All Initiatives and Rounds
• Available at ct.gov/doh

doh and at chfa. a.or

• rg
• E-Blasted to both agencies’ mailing lists

Housing Trust Fund (HTF)

• Approximately $50M in annual bonding
• Affordability up to 120% AMI
• Must be provided through competitive basis

Affordable Housing Program (FLEX)

• Approximately $50-70MM budgeted annually
• Affordability profiles up to 100% AMI

Federal Funds

• HOME Investment Partnership
• Community Development Block Grant

|Fin inanc ncin ing Pr Progr grams ms

Competitive Housing Assistance for Multifamily Properties (CHAMP) Initiative

• Semi-Annual $25MM Rounds – Dec./June
• Affordability profiles range from 25%-120% AMI
• Prioritize:
• Low Income Service
• Areas of Opportunity
• Readiness to proceed
• Mixed Income

|Fin inanc ncin ing In Init itiat iativ ives es

Affordable Housing Program (FLEX)

• Approximately $50-70MM budgeted annually
• Affordability profiles range from 25%-100% AMI
• Used as DOH Gap financing for:
• 9% LIHTC Round
• SSHP Rounds
• Innovations –Small Project Round
• Homeownership Round
• Pre-Development Loans

|Fin inanc ncin ing In Init itiat iativ ives es

• Up to $300,000
• Consolidated Application used for both SSHP

and non-SSHP development proposals

• SSHP funded through FLEX but uses separate

source from $30MM

|Pr Prede edevel elop

• pment

ment Loans ns

Governor’s $300M Initiative

• State Sponsored Housing Portfolio (SSHP)2010-

2014 Pre-development and Capital funding

• Funded with FLEX funds
• $89.5M State funds awarded
• 6,495 Units assisted
• Annual rental assistance (RAP) allocation approx.

$1.5M

Energy Conservation Loan Fund

|Fin inanc ncin ing Pr Progr grams ms

Low-Income Housing Tax Credits

• 9% - Annual Allocation - $8M
• Credits yield 10x their value in equity investment
• 4% - “As of Right” combined with Tax-Exempt Bond

financing

• Targets households at or below 60% AMI

Housing Tax Credit Contribution Program

• Annual Allocation - $10M
• Available to non-profit organizations

|Fin inanc ncin ing Pr Progr grams ms

Permanent and construction loan Multifamily Second Mortgage Program CHFA Energy Conservation Loan Program

• Most energy efficient improvements eligible
• Financing terms based on projected energy savings

|Fin inanc ncin ing Pr Progr grams ms

• Used for ALL CHFA/DOH funding rounds
• Single Excel Workbook
• Macro based workbook allows it to be used for

all applications

• Multiple Attachment Uploads
• Currently uses State BIZNET as

upload/transitioning to Shar arepoint int

Cons nsoli lidat ated ed Appli licati tion

• n

The he Proces ess: : Key Be y Benc nchm hmark rks

The he Proces ess: : Key Be y Benc nchm hmark rks

Timefr efram ame Activities ties Pre-Application 1-12 mos. prior to deadline

• Meet with owners, and

development team

• Meet with other financing

entities Funding Rounds 1-2 per quarter (“open” round funding available without deadline)

• Design Rating & Ranking

instruments

• Announce funding
• Overview sessions

Consolidated Application Deadlines set generally within 3-4

• mos. of funding

announcement

• Electronic submission and

download

The Pr Proces ess: : Appli licat atio ion

Timefr efram ame Activities ties Policy & Program 2 – 12 mos. depending on completeness of application at submission

• State & Federal law and

regulation

• State policies
• Agency objectives

Financial Underwriting

• Balanced Sources & Uses
• Trending analysis
• Focus on long-term

savings to owners and residents Technical Review

• Review drawings and

specifications

• Capital Needs Assessments
• Environmental reports
• Energy efficiency

The Pr Proces ess: : Cooper erati ative e Revie iew

Timefr efram ame Activities ties State Bond Commission 3-6 mos. prior to projected closing date

• Confirm all eligible costs
• Work with Commissioner's

Office and Office of Policy & Management CHFA Board of Directors

• Confirm terms and

conditions

• Prepare recommendations

for Board review and consideration

• Issue Term Sheet

The Pr Proces ess: : Approval

Timefr efram ame Activities ties Closing 2-12 mos. After approvals

• Work with counsel
• Review checklist

documents (construction contracts, performance bonds, zoning approvals, etc.) Construction 4-24 mos.

• Approve and fund monthly

requisitions

• Provide guidance on

construction observation Occupancy

• Review leasing processes
• Program and statutory

compliance monitoring

• 30-40 year mortgages

The he Proces ess: : Clo losin ing, , Cons nstr truc uctio tion n & Occup upancy ancy

EDWARD LACHANCE

(860) 270-8099

edward.lachance@ct.gov www.ct.gov/doh

MARCUS SMITH

(860) 571-4314

marcus.smith@chfa.org www.chfa.org